Current Mortgage Rate Trends: What Homebuyers Need to Know
Current Trends in Mortgage Rates
As the year draws to a close, mortgage rates are experiencing notable fluctuations. Freddie Mac recently reported that the 30-year fixed-rate mortgage (FRM) now averages 6.85 percent, marking an increase from the previous week’s average of 6.72 percent. This trend comes after a brief period of decline and suggests a rebound in the mortgage market.
Understanding Mortgage Rate Changes
Sam Khater, Freddie Mac's Chief Economist, elaborates on the reasons behind this upward shift. He indicated that the market is seeing improvements in new and existing home sales, although the persistent undersupply of homes continues to be a major challenge. The current economic climate may help boost activity in the home purchasing sector as we enter the new year.
Detailed Insights on Fixed-Rate Mortgages
The average rate for a 15-year FRM has also risen, now sitting at 6.0 percent compared to last week’s 5.92 percent. A year ago, the 15-year FRM was at 5.93 percent. These increases highlight the ongoing adjustments in the mortgage landscape, affecting potential homebuyers keen on securing favorable loans. The Freddie Mac Primary Mortgage Market Survey (PMMS) focuses on traditional, conforming home loans, especially for borrowers putting down 20 percent with strong credit ratings.
Freddie Mac's Commitment to Housing Affordability
At its core, Freddie Mac is dedicated to promoting homeownership accessibility across the nation. With a legacy dating back to 1970, the company aims to enhance liquidity, stability, affordability, and equity in the housing market regardless of economic fluctuations. Tens of millions of families have benefitted from Freddie Mac’s initiatives, allowing them to buy, rent, or retain their homes.
Frequently Asked Questions
1. What is the current average rate for 30-year fixed mortgages?
The current average rate for a 30-year fixed-rate mortgage is 6.85 percent.
2. How has the 15-year FRM rate changed recently?
The 15-year fixed-rate mortgage is now averaging 6.0 percent, an increase from the previous 5.92 percent.
3. What factors are influencing current mortgage rates?
Rising rates are influenced by improving home sales and the ongoing undersupply of homes affecting the market.
4. What is Freddie Mac's role in the housing market?
Freddie Mac focuses on promoting homeownership and market stability, aiding families in securing homes since 1970.
5. How can I get more information about Freddie Mac?
For more detailed information, you can explore Freddie Mac’s resources on their official website.
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